Glencore Exports Largest British Grain Shipment on Record as Pound Weakens
Glencore is shipping 70,000 tons of feed wheat, the largest British grain shipment on record reports Bloomberg.
The shipment, which is bound for Vietnam in early July, is unusual in that grain supplies are typically tight so close to harvest, however the Brexit-induced weakening of the pound has given British exports a price advantage on global markets, while last year’s bumper crop has left them with ample stock to ship. Following the June 23 vote to leave the EU, the pound fell to a two-year low against the euro and a 30 year low against the dollar.
For the season through this April, UK wheat exports reached their highest volume since 2012, while barley exports are forecast to reach a 19-year high according to the Agriculture & Horticulture Development Board. For the period through April UK wheat exports were 2.2 million tons, or 29% more than the same period a year before.
Other massive UK grain shipments are in the pipeline as well. Frontier Agriculture announced it has a 55,000 tons grain shipment planned to head to Indonesia, while Openfield announced in May that it has a 61,000 tons shipment of wheat bound for the U.S.